⏬Silver plunges over 1% after fresh data

Higher labor costs in Q4 point to formation of potential wage spiral , which raised bets that FED will be even more hawkish

The US dollar strengthened sharply after today's data, while yields jumped above 4% as labor costs in Q4 unexpectedly increased 3.2% QoQ from 2.0% in the previous quarter, and well above market estimates of 1.5% q/q.

High labor costs suggest a possible wage spiral, which would be unwelcome to the Fed, which was expected to announce its first victory over inflation. Meanwhile, inflation is reversing mainly due to lower energy costs, and the next wave of inflation growth may be related to the wage spiral.

Silver pulls back more than 1% and erases gains from  previous two sessions. Bigger downward move is seen only on the palladium market.